How costly are the public sector ineffiencies? An integrated theoretical framework for its welfare assessment

Jorge Onrubia () and A. Jesús Sánchez-Fuentes
Authors registered in the RePEc Author Service: Antonio Jesus Sanchez Fuentes ()

No 1407, Working Papers. Collection A: Public economics, governance and decentralization from Universidade de Vigo, GEN - Governance and Economics research Network

Abstract: This paper provides a theoretical framework which integrates the conventional methodology for measuring the productive efficiency and the monetary assessment of social welfare changes associated with public sector performance. Two equivalent measures of social welfare changes generated by an improvement (or worsening) in productive efficiency are deduced using duality theory. The first one is obtained from the cost function, while the second one arises directly from the production function. Moreover, the paper induces the application of the theoretical framework proposed to empirical analysis.

Keywords: Public sector efficiency; technical efficiency; allocative efficiency; social welfare changes. (search for similar items in EconPapers)
JEL-codes: D24 D60 D61 H40 H50 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2014-07
New Economics Papers: this item is included in nep-eff
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http://infogen.webs.uvigo.es/WP/WP1407.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:gov:wpaper:1407

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